Stock Mkt Terms

Annual Rate of Return formula:

*** are securities that investors consider to be undervalued.

*** is a mkt with falling prices over extended time.

**** represents the basic equity ownership in a corporation.

Simple Interest Formula?

*** are stocks of well-est companies that have stable earnings & no extensive liabilities.

Jon invests $3,000 at rate of 4% for 3 yrs.  Simple Interest results:

**** are low-priced, speculative and risky securities traded OTC.

*** offer a higher dividend in relation to their mkt price.

Rate of Return:  Investment $2500 and after one year you have $2780?

Jim has purchased 53 shares of Best Buy stock for $23.50 per share.  How much did he pay?

**** is an equity with characteristics of both bonds and common stock.

Compounded Interest: Invest $5000 quarterly payments and invest for 6 yrs at 7%?

Compounded Interest for all situations:

*** are securities that appreciate in value and yield a high return.

**** is a stock mkt with rising prices over and extended time.